TotalEnergies has signed an agreement to acquire from its three founders the entire share capital of Kyon Energy, a prominent developer of battery storage systems in Germany. The deal consists of a €90 million upfront payment and earn-out payments related to the achievement of development targets.
Since its establishment in 2021, Kyon Energy has successfully developed 770 MW of projects, with 120 MW already in operation, 350 MW under construction, and 300 MW ready to be built. The company also boasts a 2 GW pipeline of advanced-stage projects. With the expertise of Kyon Energy’s management and employees, TotalEnergies plans to develop, build, and operate these projects, primarily located in the North of Germany, as part of its integrated power strategy.
“I would like to welcome the Kyon Energy teams to TotalEnergies. The acquisition of this company, one of the leaders in its market, is a key element in our presence in the German electricity market, which is the largest in Europe,” said Stéphane Michel, President Gas, Renewables, and Power at TotalEnergies.
“This acquisition will enable us to accelerate the development of our integrated power activities in Germany, both in production, trading, aggregation, and marketing of low-carbon electricity available 24 hours a day. It also contributes to our profitability target for this business segment of 12% ROACE by 2028,” Michel added.
“This partnership with TotalEnergies represents a key moment for Kyon Energy, as we aim to become one of Europe’s leading flexibility providers. By joining forces, we are consolidating our position in the German electricity market, and thus making a direct contribution to its transition to a more sustainable system,” said Adrian Kapsalis, CEO of Kyon Energy.
TotalEnergies aims to build a portfolio combining renewables (solar, onshore, and offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers and achieve net zero by 2050.
The acquisition, subject to regulatory approvals, follows the award of a maritime concession to develop a 3 GW offshore wind farm, the acquisition of renewable energy aggregator Quadra Energy, and a contract to install and operate 1,100 high-power charge points for electric vehicles.
